Ohio fight over toll revenues

There's a major fight in Ohio over legislation to earmark revenues of the Ohio Turnpike to support state borrowing for spending programs that supposedly would create jobs. Dem Gov Ted Strickland initiated the plan earlier this month under which the Turnpike would provide $20m a year to the state to pay interest on debt for a make-work program of spending.

The plan was backed by the new Turnpike CEO George Distel who said "all revenue players" in the state needed to play a role in supporting stimulus to the state's economy.

Legislators along the Turnpike are offering an amendment that requires the money to be spent near the Turnpike.

Economists say such spending is illusory in generating jobs since it simply detracts from spending elsewhere, but politicians love to claim to be making jobs. If the Turnpike turns over money to the state it will spend that much less, reducing jobs by the same amount.

Toll revenue in the last fiscal year for which the Commission has reported (2006) was $184m and profit was $27m.

TOLLROADSnews 2008-05-20